Price of Used Cars: What factors are Considered?
Used Car Price - What condition is the car in?
There are many factors that go into the price of used cars. Understanding these can make your life a lot easier when you are buying or selling a car.
The most obvious factor in the price of the car is the make and the model of the car. Then there is the year of registration of the car and the trim of the car. The different engines in the car make a difference to the price, as will the transmission of the car and the type of drive it is. The mileage of the car is very important as the more mileage on the car the lower the price will be compared to exactly the same make and model, trim and transmission.
People perhaps don't appreciate the massive differences between cars in terms of the equipment in them. Think about it this way. You could have auto-climate control, alloy wheels, power steering, AM/FM Stereo, cassette, single compact disc player, CD Auto-Change, premium wheels, navigation system, integrated phone, front and rear air bags, front side air bags and rear spoiler. You could also get a DVD system, chrome wheels, leather, traction control, telescoping wheel, anti-lock braking, dual front air bags, power door locks, moon roof, dual power seats, power windows and cruise control.
A very important criteria for the price of the car is the condition of the car. There are four different levels of condition – excellent, good, fair and poor.
Excellent condition means that it is in excellent mechanical condition. It needs no reconditioning and would pass a smog inspection. The engine compartment will be clean and there will be no fluid leaks. The paint is glossy and there is no wear or visible defects on the body and interior. There should be no rust, the tyres should match and be the proper size and be newish. There should be a clean title history as well.
Good condition means there are no major defects. The paint, interior and body have minor blemishes and there aren't mechanical problems. Rust can be corrected. Tires match and have not much tread wear. There is a clean title history. Some major reconditioning may be needed.
Fair condition means there are some cosmetic and mechanical defects yet is in safe condition for running. There will need to be body, paint and interior work done by a professional and the tyres have to be replaced. Some repairable rusting might be there.Poor condition cannot be readily fixed. They may have a branded title like flooded or salvaged or its mileage is unsubstantiated. These are very difficult to price and you would need to get the car independently appraised or you may never be able to drive it.